Greetings and welcome to the SITO Mobile 2016 Financial Results Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host Joe Wilkinson, SVP of Investor Relations. Thank you. You may begin.

Joe Wilkinson

Thank you and welcome to SITO Mobile’s Q1 2016 earnings call. We appreciate your interest. In order to be more efficient with your time today, we’ll be reading SITO Mobile’s Safe Harbor statement following the Q&A portion at the end of the call. With us today are SITO Mobile’s CEO and President, Jerry Hug; and the company’s CFO, Kurt Streams.

It is now my pleasure to introduce Jerry Hug, SITO’s President and CEO.

Jerry Hug

Thank you, Joe, and thanks everyone for joining us on our call today. I’m pleased to report that we began our 2016 fiscal year with another very strong quarter. We had excellent revenue growth in Q1 and on that strength we delivered significant EBITDA in the quarter. This is an early indication of our revenue growth opportunity and the operating leverage of our business model. We’re gaining further traction on a number of fronts with significant growth in campaigns, new customers, campaign size, pipeline and new bookings.

We’re also adding new partnerships expanding existing partnerships and expanding our product and services distribution ecosystem, creating new service offerings and new revenue opportunities. The driver behind this performance and our bullish outlook is our accelerating participation in the large and rapidly growing mobile advertising market. Today, I’ll briefly run through our quarterly results and accomplishments, give you an update on our value proposition, and lastly provide some general perspective on our expectations and outlook for the balance of 2016.

In Q1, ended December 31, SITO delivered total revenue of $7.2 million, up 60% sequentially, and an improvement of 87% over Q1 of last year. Our revenue growth was once again led by high growth in our media placement business. The revenue associated with our mobile programmatic ad tech business, which grew to $5.3 million in Q1, up 77% sequentially from $3 million in Q4 and more than triple Q1 of 2015.

This part of the business did very well in the December ended quarter, and our customers are quite enthusiastic about the performance of our products. As a result, we’re gaining new client relationships. Our RFP pipeline and full-year bookings are growing, and I’ll talk more about that in a moment. We had an excellent Q1, but please keep calendar year’s seasonality in mind, as you develop your expectations and build your models and financial forecasts.

Now that the mobile advertising business is a much larger portion of our total revenue, we are more likely to experience seasonality related to advertisers spend cycles and clearly this helped our Q1 to some extent. It’s hard to tell with precision, how much of an effect this had on our Q1, but the holiday season is typically followed by a January low in the ad industry and as a growing player in this space, we’re not immune from this seasonality.

So while our media placement revenue growth trajectory may flatten out sequentially, coming into Q2, based on future bookings and overall demand, we expect the revenue to resume its sequential growth trends in the second half of this quarter. Our wireless applications revenue or revenue associated with our SMS services also had a good Q1, producing $1.6 million in revenue, up 20% sequentially from Q4, also lifted in the quarter by holiday seasonality.

On our last earnings call, I described having a little over a year we’ve transformed SITO Mobile from a largely SMS-based company into a potent mobile programmatic advertising platform with multiple and diversified revenue streams and accelerating growth. We’ve now fully integrated the tech data operations, customers and sales reps of the Hipcricket acquisition and this integrated platform is now beginning to deliver that kind of results we had envisioned.

Our Q1 revenue growth and EBITDA production are early indications of the momentum of our transformation strategy. In 2016, we’ll build on that foundation of this success by improving our technology in data platform and by further growing and by leveraging the distribution ecosystem we’re building. The foundation of our revenue growth and increasing operating leverage is the result of synergy by having both our attribution technology and data management platform under one roof, which enables real-time optimization and operational efficiencies, both tangible benefits of the Hipcricket acquisition.

These benefits contribute to our margin and provide more actionable data, which enables us to funnel more campaign dollars to the targeting strategies showing the highest engagement. The net effect of this is higher campaign performance. Advertisers have always struggled with understanding and measuring the success of their advertising campaigns and knowing which advertising strategies and tactics work, and how and why. Further, they need to know which ads work and which ones do not and in what situations this is all happening.

This has never been easy in traditional advertising media, and there has always been a lot of faith and guesswork involved, and very often these findings are a lagging indicator and are not determined until long after the campaign is over and ad dollars are spent. In order to measure their campaign effectiveness, the ad industry is asking for a number of data points in addition to the demographic audiences they are targeting.

Specifically, they are interested in location, attribution, viewability, and verification. And they want all of this in combination with visibility and transparency and they want it in near real-time, so that they can very quickly learn and understand what is working and what is not, allowing them to adjust their tactics rapidly and spend accordingly, so they can increase the effectiveness and return on their advertising investment.

This is a lot to ask for, but it’s what advertisers want and need in order to confidently assess the effectiveness and return on investment of their ad campaign dollars. Fortunately, the mobile digital advertising medium has a unique ability to deliver location-based data collection and verification of location-based behavior. With SITO Mobile sophisticated ad tech tools, the mobile device usage and data collection dynamic gives us the ability not only to build audience data-based on mobile usage patterns, but also to track users’ physical movements and locations as they go about their day-to-day activities.

This is very powerful data when combined with audience building and user tracking and ultimately with verification, validation, and attribution that is measurement of campaign success and return on investment in near real-time. Putting this all together is complex, data driven, and requires massive processing power in order to aggregate all of this information and serve it up in a usable manner that our operations personnel and clients can use to best manage campaigns for maximum effectiveness.

We believe our Verified Walk-in product is a unique differentiator and is the best mobile location-based product in the industry. Our Verified Walk-in operational dashboard allows us to track and verify the success rate of ad campaigns in progress and make on the fly adjustments to these campaigns based on measurement of real-time engagement patterns. With the benefit of this data, we’re able to rapidly direct campaigns to improve performance that is demonstrably better than industry standards and averages and we're able to prove these results to our clients.

The capabilities of our Verified Walk-in products offer incredible value to our mobile advertising clients by giving them confidence that their ad dollars are well spent and they're telling us this through their increasing engagement, buying behavior, and our building book-of-business, which I'll talk about in a few minutes. Our products are already very good, but we're not standing still. We're making them better and more efficient and effective through a number of enhancements to our products and capabilities.

We're investing significantly in our text deck, data management platform and user interface. And in the coming quarters, you will see SITO Mobile rollout new solutions and improved service offerings including better and more efficient attribution and verification and improvements to our data management platform. You'll also see additional video, native and rich media ad formats. These formats are in high-demand and growing rapidly and command premium prices.

Mobile video has been growing steadily for years, but it is now close to justifying the hype that it generated throughout the years. Mobile video ads spend in the U.S. more than doubled from 2013 $720 million to 2014 $1.15 billion and we’ll reach an estimated $6 billion in 2018 representing about half of the total online video ad spend.

Our product additions and improvements are targeted at improving, expanding, and enhancing our service offerings, achieving even better client experience and results, while adding a greater degree of measurement, transparency, and utility. These capabilities are being built to scale, helping fuel and service our growth expectations. As we grow, it is essential that we add not only to our capabilities to ensure we’re providing our clients with great results, but continually improve our platform, scale, scope and reach.

We’re investing each quarter to stay ahead of the technology and services curve and achieving better data management capabilities, better scale, and much faster processing speeds. Improvements here allow us to process client demands with more efficiency and effectiveness and not only help us to scale the business, but also provide better results and greater transparency for our clients. With all of these investments and improvements, we’re adding to an already robust technology and data management platform.

Let me give you some data on the scale and reach of the SITO Mobile platform. Our platform reaches over 95% of U.S. mobile and tablet consumers, featuring the most popular mobile apps, games, and sites. We are connected to multiple data sources and exchanges and maintain a database that processes more than 4.5 trillion data points per month. Our text data management platform and product set are foundational to our client success and drive our revenue growth and we’ve also built a growing distribution and data ecosystem to complement, sell, and distribute our products and services. This network is in the form of data partnerships, sales channel partnerships, and relationships with various parts of the advertising value chain.

During our last call, I talked about our various data partners and how their third-party data enhances our first-party data to build more relevant target audiences and drive audience engagement and client success and also laid out some data supporting the tremendous size and growth trajectory of the mobile advertising realm. And today, I want to highlight some of our sales and distribution strategies, and how they are broadening and diversifying our access to the large mobile advertising market opportunity.

First, let me give you some perspective on Q1 client and campaign dynamics to illustrate how we are growing and diversifying our revenue and client base. In Q1, we once again saw more new customers, more ad campaigns and increasing average campaign size while maintaining a healthy client retention and renewals rate. During the quarter, approximately 30% of our customers were new to SITO, 27 new customers of 87 total and we managed 20% more total ad campaigns in Q1 than in Q4, with more than 300 campaigns delivered in Q1.

We also once again saw a nice sequential lift in average campaign size as our average campaign size is now over $20,000 and growing. So, we’re adding more clients, running more and larger campaigns, and our clients are typically renewing. All of this drove revenue growth of course, and assuming these trends continue, bode well for future performance.

As we expand our client list and campaign size, we’re also expanding our channel partnerships and our product and services sales footprint. We more than doubled our direct sales force in the last year, and we’ve added a number of channel partners and agencies to our network and we expect to add significantly to our portfolio of channel partners and agencies during the year. The addition of the channel partners and agencies has a multiplier effect on our sales proposition, not only on the growth and expansion of existing campaigns, but also on attracting new ad dollars to the platform. As success with one end-user client can translate to new customers as well as greater allocation of existing budget from these or other partners clients.

One channel partner we recently expanded our relationship with is Canada-based Cieslok Media. After an excellent experience in 2015, SITO Mobile formalized our relationship with Cieslok Media to serve the fast growing Canadian market based on our combined success to date and confidence in continued growth. Cieslok committed to delivering a minimum of $2.1 million in mobile advertising business to SITO for calendar year 2016, more than double 2015’s results. We’re already off to an excellent start with this business in terms of recent results and future bookings and we’re optimistic that our partnership will exceed the minimum target and that this is just the beginning of a strong revenue growth story for us in Canada.

We’ve also had success adding a number of advertising agencies whose business has grown substantial as they add mobile advertising clients and dollars to their overall scope of service. Our location-based verification products have brought particular success with large vertical market segments, who are moving rapidly into mobile advertising like retailers, automotive manufacturers and dealerships, entertainment facilities, food and beverage, pharmaceuticals and consumer product goods.

We now run campaigns for a growing number of Fortune 500 companies either directly or indirectly through agencies. We’re also having success dealing directly with large household name brands as they become more involved with direct-to-consumer mobile advertising and become more hands on with running their own programmatic mobile ad campaigns in-house versus farming them out.

Looking at these verticals, it’s apparent that our solutions are valuable to a variety of businesses and brands, who want to drill down further into consumer behavior and location, an interesting current opportunity on this front is the political arena. And in the coming weeks, SITO will launch its new political product SITO Elect. The product will enable political parties and candidates to utilize mobile location-based targeting and data to influence key audience segments such as millennials and minorities. The 2016 Elections will see significant political ad budget move from TV to mobile due to higher engagement levels and better targeting capabilities.

SITO Elect will enable us to compete for the coming on slot of campaign advertising dollars. Putting this all together on the foundation of our product results, we’re expanding, growing and diversifying our client base and expanding campaign sizes, we’re also growing and expanding our distribution partner network. We’re getting on the radar more and more well-known and bigger brands and agencies with bigger budgets and growing the mobile demand and we’re calling higher up the food chain of budget allocators with many of these clients.

Our growing profile directly translates into our ability to capture a larger share of this enormous market. Our RFP opportunity pipeline is larger than ever and growing substantially with not only more opportunities with a greater number of clients, but we’re also gaining access to a larger deal sizes with larger clients. This is becoming more evident as our bookings or backlog for the balance of the year grows. We’ve recently experienced by far the largest booking we’ve ever had with several large clients committing to larger long-term campaigns to be run throughout the balance of the year.

Our revenue pipeline and bookings growth are all an indication of our platform product and sales channel success thus far and a good indication of how our customers value our solutions and also give us greater visibility into and confidence in the future revenue growth.

Before I wrap things up, I’ll give a quick update on our patent portfolio. During the November 24 earnings call, I indicated that greater attention would be placed on further developing and leveraging the company’s patent portfolio. Since then, we have had allowance of two new patent applications in our streaming portfolio and expect several others to be allowed over the coming months, bringing us to a total of over 20 patents issued and more than 15 pending.

In addition to seeing continued progress with the streaming portfolio, several new filings have been made in other key areas including carrier select and over-the-air provisioning of mobile devices, which have particular relevance to technologies such as the Apple Sim and Google’s project Fi. We also have put in place a process for capturing new innovations and securing intellectual property protection on our current mobile advertising platform.

Over the next several months, we will be exploring potential partnering opportunities with key market players to further develop and begin to further monetize our extensive portfolio of patents. Lastly, let me say a few words about our balance sheet and general financial outlook. We are currently monitoring our liquidity position and assessing our cost of and access to capital. In Q1, we ended the quarter with $2.6 million in cash on the balance sheet adding approximately $600,000 to our cash position, largely through operating cash flow, even after paying down approximately $667,000 in debt principal and investing in our technology platform during the quarter.

Giving SITO Mobile strong recent revenue growth, EBITDA production, and our visibility into our growing bookings and pipeline, we foresee sustainable positive EBITDA for 2016 and we are confident that we put SITO Mobile in a position to fund growth and not losses.

Now, I’ll turn the call over to Kurt for a more detailed review of our financial results. Kurt.

Kurt Streams

Thanks, Jerry. I’d like to review for you our performance in SITO’s fiscal first quarter or Q1 2016 and compare our results to the preceding quarter, SITO’s fiscal fourth quarter or Q4 2015 and compare results to our fiscal first quarter of last year or Q1 2015. For Q1 2016, SITO produced revenues of $7.2 million, an 87% increase over Q1 2015 and a 60% increase over Q4 2015.

As Jerry mentioned, this improvement was led by continuing growth in our media placement revenue, which more than tripled to $5.3 million for the quarter compared to approximately $1.3 million in last year’s Q1 and jumped 77% sequentially. Media Placement revenue has grown to represent 74% of our total revenue in Q1 2016, representing revenue from nearly 100 different clients and demonstrating our continued revenue diversification. We expect to maintain a diverse revenue base in the coming quarters as we add customers and larger mobile advertising campaigns.

SITO Mobile generated approximately $245,000 in licensing and royalties revenue, up approximately $144,000 from Q4 2015, and boosted by $100,000 in one-time revenue from Zoove Corporation that we announced on December 9, 2015. We saw a significant sequential increase in wireless applications SMS revenue producing $1.6 million in Q1 2016 compared to $1.35 million in Q4 2014, with the sequential lift driven primarily by SMS messaging associated with holiday shopping.

Gross profit in Q1 2016 was $3.8 million, up 60% from the $2.4 million in Q4 2015, driven by higher revenue, and up 88% from $2 million in Q1 2015. During Q1 2016, we reclassified some operational expenses that affect the financial statement geography of these expenses. This reclassification has the effect of moving some expenses that were previously recognized in sales and marketing into cost of revenue expense line items. And therefore, these changes impact our gross profit and our gross margin percentages.

Additionally, we move to research and development expense into G&A. The expense reclassification changes are not a recognition issues, and therefore has no effect on any total costs and expenses, operating net income and loss, EBITDA, net loss, cash flow, assets or liabilities. Taking the cost of revenue reclassification into consideration, gross margin for Q1 2016 was 52%, sequentially even with Q4 2015 gross margin and in line with the 53% gross margin for Q1 2015.

For comparative convenience, we’ve included a table in today’s press release that lays out and highlights the expense reclassifications with historical context. We believe that this additional information provides transparency and clarity for our historical results for the past five quarters impacted by the reclassifications. We will be happy to walk you through any questions you may have after the call.

Sales and marketing expense excluding stock-based compensation was $1.8 million for Q1 2016 compared to $1.2 million for Q4 2015. This increase is primarily attributed to increased sales and marketing spending related to the substantial expansion of our direct sales force and additional operations personnel as we rapidly expand our media placement presence in order to handle growing demand in our corresponding revenue growth.

We believe this is a front-loaded expense spike and we expect that our new sales and personnel come on, come up to speed, and deliver on their sales targets in the coming quarters that this expense item will scale with revenue growth and expect a normalized percentage of sales in the 20% range.

General and administrative expense, excluding stock compensation expense, was approximately $1.58 million for Q1 2016, compared to $2.25 million for Q4 2015. A decrease of approximately $670,000, primarily due to the non-recurrence of Q4 expense items of approximately $500,000 associated with one-time professional and legal fees associated with the Hipcricket acquisition as well as our NASDAQ listings.

Adjusted EBITDA was $677,000 for Q1 2016, an improvement of $1.4 million from our $764,000 adjusted EBITDA loss in Q4 2015. The Q1 2016 adjusted EBITDA production is an early indication that we’re building a business with operational scale that delivers increases in adjusted EBITDA as we grow. During Q1, we reported a net loss of $388,000, or $0.02 per share. At December 31, 2015, we had cash and cash equivalents position of $2.6 million, reflecting our positive cash flow from operations that was bolstered by our generating a net profit from operations and the improving pace of collecting our accounts receivable.

We serviced our Fortress long-term debt by making $667,000 in principal repayments and invested $417,000 in developing our mobile media technology platform that we used to generate our revenues. In Q1, our accounts receivable was $6.3 million, reflecting a higher revenue growth in the quarter, including $3.1 million in revenues in December alone. Despite the increase in revenues, we improved our days sales outstanding and receivables, or DSOs, by 17% to 81 days, and we anticipate continued improvement in this metric.

I would like to now turn the call back over for our question-and-answer session.

Question-and-Answer Session

Operator

Thank you. We will now be conducting a question-and-answer session. [Operator Instructions] Thank you. Our first question comes from the line of Brooks ONeil with White Oaks, Investor Relations. Please proceed.

Brooks ONeil

Good afternoon guys and congratulations on good quarter.

Jerry Hug

Thanks, Brooks. Good afternoon.

Kurt Streams

Thank you.

Brooks ONeil

So I have a couple of couple questions. I’m just curious obviously you’ve talked a lot about the sales increases and the progress you’re making in the marketplace. And I was hoping may be you could give us a little more color on the types of organizations, where you feel you’re getting the most traction in the business today?

Jerry Hug

So, it’s coming from a broad diversification of sectors. I would have to point out that the two largest contributors last quarter, Brooks, were in national retail and Tier 1 automotive. So we’re doing quite a bit with the – and the automotive category driving auto-intended buyers into dealerships for new car purchases.

Brooks ONeil

That’s interesting. And you think there’s a lot of leverage in that going forward, a lot of opportunity there.

Jerry Hug

The amount of money that is in that category alone probably [indiscernible] some of the others because it’s divided into three categories: Tier 1, Tier 2 and Tier 3 as you look at national dealerships, regional dealerships and then local dealerships. So, we’ve already proven our success in that category and expect to do a lot more in the coming quarters.

Brooks ONeil

Great. And then secondly, obviously, you’ve talked about your IP progress, I was hoping may be you can give us a feel for whether you thought there might be any kind of significant monetization of that portfolio in 2016 or 2017? Or is that something that’s further out or just difficult to predict?

Jerry Hug

Well, it’s difficult to predict, but I will tell you that our streaming media portfolio with the additional patents that’s been granted has gotten to the size and scale where we feel a confluence of factors has occurred. And that confluence of factors is the portfolio is now has enough diversification and enough patents in that family to cover substantial technologies as relates to the current players in the streaming space. And we feel that the market has now gotten big enough and is large enough and continuing to grow to where economically it would make sense for us to begin the process of monetization. The good news is that every day that goes by this market continues to get larger and larger. So, we’re being patient and taking our time to monetize and we feel that this year is the logical time to begin the process.

Brooks ONeil

That makes sense. So, you talked about the balance sheet, you also talked about the investments you’re making to grow the business, would you say balance sheet – you feel you have the financial flexibility to continue to grow or do you think 2016 will be a time when you’ll need to see some additional capital?

Jerry Hug

We think if we look at the balance sheet today, given the financial performance, our internal goals that we feel that we now have a self-sustaining business that will allow us to continue to grow without accessing the capital markets.

Brooks ONeil

That’s great. And then lastly, I’m just curious obviously there’s a lot of players involved in the mobile advertising business and some have high visibility, and big scale and others probably don’t. How would you characterize or could you just talk a little bit about the kinds of companies that you compete with specifically, so we could get a little better feel for the place in the market where you feel you’re most targeted and will have most effectiveness?

Jerry Hug

So, we specialized in location-based mobile advertising. If you look at some of the larger more familiar names that are out there in this space, some of the large social media platforms, some of the large search platforms, they’re not playing in the location-based market per se. So, right now, our competitors are roughly a handful of what I would call private companies that are – have yet to go public, so I’m reluctant to name their names because they’re not in the public marketplace.

Brooks ONeil

Sure.

Jerry Hug

But there is a handful of four companies that we compete with I would say on a day-to-day basis that focus on location. Now, of those four, we focus on location more granularly because what we do is based upon users’ longitude and latitude location parameters versus what I would call more broadly defined location parameters. So, we get – and that correlates into the enormous amount of data that I alluded to that we are crunching on a monthly basis.

Brooks ONeil

So, you’d say you have a competitive advantage based on your current technology capabilities relative to the set of competitors you’re competing with directly today?

Jerry Hug

Well, what I would say, Brooks is that, what we do is more complex.

Brooks ONeil

Yes.

Jerry Hug

And therefore the results yield higher ROI, which then correlates to what we feel, gives us a competitive advantage.

Brooks ONeil

That makes sense. Thanks a lot for all the information.

Jerry Hug

You’re welcome.

Operator

Thank you. Our next question comes from the line of John Nobile with Taglich Brothers. Please proceed.

John Nobile

Hi, good afternoon, and congratulations on the numbers. I was pleasantly surprised to see actually the media placement revenue come in even higher than I think you had guided on the last call. But that leads me to a particular question in regard to Hipcricket. I think last call you said that you were involved in an approval process with Hipcricket’s customer. So I just wanted to get a sense for how that has been going. Is that – I take that’s being going well and that that could have attributed to the higher sequential growth in media placement?

Kurt Streams

I don’t think – so yes, that process is going well as I alluded to in my comments, John. We’re now fully integrated into that process and I would point to that specifically as the soul characteristics of our outperformance. I think it was a number of factors that allowed us to see the type of performance that we put up and Hipcricket was one of several factors.

We don’t. We’re now one collective group having finished the integration of all the people, processes and systems in the beginning of last quarter.

John Nobile

Okay. And I just wanted to make sure I got that correct. Did you say that – during the quarter, the average campaign size for this quarter was a little over $20,000?

Kurt Streams

That’s correct for the direct channel, correct.

John Nobile

Okay. Now I just wanted to get for comparison some purposes, how does that compared to – you came out of fiscal 2015, September quarter was the fiscal year. So I just wanted to get an idea of what is 2020 number compares to versus the fiscal year you just came out of. If you have that average number of campaign price that would be free?

Kurt Streams

So what we saw was the average campaign size for that prior quarter was about $16,000.

John Nobile

The prior quarter, so Q4 of – or the September quarter?

Kurt Streams

Correct, correct.

John Nobile

Okay, that was a good sequential jump in the campaign size, and not just size, but campaign number – the quantity of campaigns I take it has gone up obviously by the numbers.

Kurt Streams

Absolutely.

John Nobile

Okay. Now wireless application revenue, if I can single that out, it’s typically strongest in Q1 I guess along with media placement, but if I could talk about wireless application, now that was I believe $1.6 million in the quarter. Should we expect to return back as in the previous quarters like $1.3 million to $1.4 million range? Or is there anything to suggest growth in this market?

Kurt Streams

Well, I think using that that figure is a good baseline. There are growth opportunities there that we are looking at and the number can grow off that $1.3 million, but that’s a good baseline indicator.

John Nobile

Okay, all right. I just wanted to know how things were going there, but I mean it’s basically one very large customer there. Let me see, actually gross margins, you covered that. I just wanted to get an understanding. But just one final question, I wanted to talk about SG&A and forgive me if I haven’t had a chance to look through the queue that you came out. But SG&A was – if I head up sales and marketing and general, you had about $3.4 million, $3.5 million quarter – the first quarter.

Now last quarter, actually last quarter was $4.1 million, but it really wasn’t because a lot of that was shifted into other line items. So, I just want to get a feel for SG&A, the level that you just showed if I hadn’t bolt up it’s a $3.4 million, $3.5 million quarter. Going forward if this is a number that we could take as pretty constant or do you look to still build upon this number?

Kurt Streams

So, what we said in our March regarding sales and marketing is, we’re managing that to more of a 20% of revenue number. So, we believe revenues are going to scale and sales and marketing expense as a percentage of revenues is going to decline. So that’s where we see that one trending. And we’re also working on G&A expense to kind of keep that in line in a dollar basis with what we saw this last quarter.

John Nobile

Okay. So a 20% - so let’s see $7.2 million. So we’re looking – that was – I guess, it was roughly about that number. Okay, so forget about the 20% or so modeling purposes going forward, the SG&A from this point on.

Kurt Streams

It may take more than just this March quarter to get there, but that’s where we’re directionally heading.

John Nobile

Okay, okay. I will look – I hope you’re trying to see that [indiscernible]. All right, that’s all I have. Thanks for taking my questions.

Jerry Hug

Thanks, John.

Operator

Thank you. Our next question comes from the line of Chad Nelson with Thomson. Please proceed.

Chad Nelson

Hi, guys. How are you?

Jerry Hug

Good, Chad. How are you?

Kurt Streams

Very good.

Chad Nelson

First of all, Kurt, very nice job laying out this historicals on the adjustment. I have a few follow-up questions for that tomorrow, but very nice job. Jerry, I apologize, I’m bouncing a couple of things, if I repeat myself for any questions. I apologize. But you said the largest booking I think in the quarter than several clients committing to the year, but I mean, that’s obviously sounds pretty good, but can you give us a little bit more, more color. I mean that certainly kind of speaks to the recurring revenue nature of the client base, anything else you have there would be helpful?

Jerry Hug

Right, so, what I was referring to is that we look at our daily – revenue generated from a daily dashboard that management has visibility into. And up until this past week in this quarter, the largest daily revenue we experienced was a little over $400,000 in total campaigns. This quarter, we achieved a day where we saw a little over $1.3 million in campaigns come in and that was due to renewals by some large brands that are increasing their spend and new customers coming onboard. So we were encouraged by the dual activity, a large renewal, and bring a new customer. So there wasn’t any concentration risk so to speak.

Chad Nelson

Yes, great. And then secondly on the IP side, I am just kind of looking at how – the language has maybe changed a little bit. So I think this time you specifically said, exploring some relationships with key players in your opening remarks. So, I am hopeful that we’re getting to the point where we can take our keys into a little bit more, right, [indiscernible] biggest discussions we tend to have on the IP. Can you give us any color there? I mean it sounds like – I mean some external parties are clearly outside of Fortress are interested in the IP, if you’re to make any comment or what can you share?

Jerry Hug

Not, if you want me to get in trouble with the…

Chad Nelson

And that’s all…

Jerry Hug

Well, I think, it’s fair to say that we’ve now said and have repeated that we intend to really focus on monetization. We feel that the portfolio is now strong enough. We feel that the markets are big enough. And quite frankly, as I mentioned in my remarks, some of the IP that we had like carrier select and over-the-air provisioning, the market is now starting to come into that IP. So that IP was actually ahead of the market if you look at the products that we referenced in the Apple Sim and the Google Fi product.

They really haven’t even been launched significantly here in the U.S. So, I think, it’s just a matter of looking at the opportunity. I will tell you we have a lot of smart, thoughtful, well respected industry players that are working with us on this. We think we have the best and the brightest in the IP space. And we’re taking their advice and counsel and looking to maximize the value for the shareholders given the current political environment, environment around patent monetization and litigation.

Chad Nelson

Okay. Then may be I try that one in a different way. So I think previously in terms of milestones for the shareholders, you kind of talked about these additional patents that you guys have been after. It sounds like may be a couple more or less. I mean, how should we think about kind of milestones from here? Or is there a fair amount you kind of anticipate adding in terms of numbers of additional granted? Or is there anything you can share along those lines, I know it’s delicate, but…

Jerry Hug

Right, so what’s important to note here that in order to have a robust patent portfolio, you never stop innovating. So it’s not like we’re going to say, okay we now have ten patents in this category, let’s go out and monetize. So, there’s going to be constant innovation, constant new claims, and continuations that we will be working towards and it will be an on going effort. We’re always going to look to improve and strengthen those key assets. And so, there’s never a start time based upon pure numbers, Chad.

Chad Nelson

Okay.

Jerry Hug

I think we’re now at a – critical mess where we can have meaningful discussions, given the breadth of the inventions that we have.

Chad Nelson

Okay. Did you disclose the number of sales – quota-caring sales persons?

Okay. And so just in terms of speaking to the calendar year, may be what does that look like in your mind at the end of this year?

Jerry Hug

We are looking to add a couple of sales people and some sales geography areas that we think have some nice opportunities. So, I would say we’re looking about a couple of additions of people.

Chad Nelson

Okay. Good to hear because we’ve added a bunch. And so, I think clearly the focus is kind of on maximizing efficiency of the current sales forces were just continuing to grow at a fee-base correct?

Jerry Hug

Absolutely.

Kurt Streams

Yes.

Chad Nelson

Great, you guys are moving the ball down the field, good job. We’ll chat soon.

Kurt Streams

Thanks, Chad.

Jerry Hug

Thank you.

Operator

Thank you. We have reached the end of our question-and-answer session. I would like to return the call to Joe Wilkinson.

Joe Wilkinson

Thank you and thanks all of you for your time on today’s call and your interest in SITO Mobile. Before we close, I’d like to now read our Safe Harbor statement. On this call, management personnel’ prepared remarks contain forward-looking statements, which are subject to risks and uncertainties and management made additional forward-looking statements during the Q&A session. Therefore, the company claims protection of the Safe Harbor for forward-looking statements that is contained in the Private Securities Litigation Reform Act of 1995.

Actual results could differ materially from those contemplated by our forward-looking statements, and as a result of certain factors, and not limited to general economic and business conditions, competitive factors, changes in business strategy or development of our plans, the ability to attract and retain qualified personnel and changes in the legal and regulatory requirements.

In addition any projections as to the Company’s future performance represent management’s estimates as of today February 09, 2016. SITO Mobile assumes no obligation to update these projections in the future as market conditions change. The company will file its 10-Q with the SEC shortly and today issued a press release announcing its financial results. So, participants in the call, who may not have already done so, may wish to look at these documents as they provide a summary of the results on this call.

Today’s call may include non-GAAP financial measures and were required a reconciliation to the most directly comparable financial measures are calculated and presented in accordance with GAAP and can be found in today’s press release, which is also available at sitomobile.com.

Thank you. This concludes today’s teleconference. You may disconnect your lines at this time and thank you for your participation.

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